Cooperatives Are Critical Component of National Health
Care Reform Bill Passed by U.S. Senate Finance Committee
MADISON, Wis. (October 13, 2009) Cooperative Network President & CEO Bill Oemichen today expressed support on behalf of Wisconsin and Minnesota’s large cooperative community for the Senate Finance Committee’s action today passing a national health care reform bill that includes cooperatives as a key component. The health care cooperative language is contained in title 1, Subtitle E, of the bill.
The health care reform bill passed the U.S. Senate Finance Committee on a 14 to 9 vote and will now be reconciled with a version passed by the U.S. Senate Health, Education, Labor and Pensions Committee before going to the Senate Floor for a vote.
“Although specific details have yet to be written, we are very pleased the cooperative business model has been included by the U.S. Senate Finance Committee as a part of national health care reform, said Bill Oemichen. “Wisconsin and Minnesota are home to more health care cooperatives than any other part of the country with more than 1.7 million participating members.”
The U.S. Senate Finance Committee authorizes $6 billion in funding for the Consumer Operated and Oriented Plan (CO-OP) program to foster the creation of non-profit, member-run health insurance co-ops that serve individuals in one or more states. CO-OP grantees would compete in the reformed individual and small group insurance markets on a level playing field with other plans. Federal funds would be distributed as loans and grants. Loans would be provided to assist with start-up costs, and grants would be provided to meet state solvency requirements.
Wisconsin and Minnesota health care cooperatives include HealthPartners HMO in the Twin Cities; Group Health Cooperative of South Central Wisconsin in Madison; Group Health Cooperative of Eau Claire; the Rural Wisconsin Health Cooperative of Sauk City, The Alliance, Rx Wisconsin, and the Farmers’ Health Cooperative of Wisconsin in Madison; Physicians’ Health Cooperative in the Fox Valley, Healthy Communities Cooperative of Janesville, the Waukesha County Areas Schools Health Purchasing Cooperative of Waukesha, and the Healthy Lifestyles Cooperative of Brown County, Wisconsin, among others. Several more cooperatives are under development and are expected to be offering health insurance in the next quarter.
Oemichen noted Wisconsin legislation passed several years ago that was sponsored by state Senators Sheila Harsdorf (R-River Falls) and Jon Erpenbach (D-Middleton) and former state Representative Curt Gielow (R-Mequon) has gained national attention and increasingly is being seen as a national model under the health care reform bill considered by the U.S. Senate Finance Committee. The Wisconsin legislation was modeled in part after pilot project purchasing alliance legislation passed by the Minnesota state legislature in 2002.
|
